Australians have been advised to remain calm despite concerns that a temporary relaxation in fuel standards might harm their vehicles.

The Albanese Government announced a temporary adjustment in fuel quality regulations, permitting petrol with increased sulphur levels to be distributed in the domestic market for the next two months. This decision aims to mitigate petrol supply disruptions caused by the ongoing conflict in the Middle East.

According to Energy Minister Chris Bowen, this measure is expected to release an additional 100 million litres of petrol monthly, which translates to an extra two days’ worth of national fuel supply.

NSW mechanic and racer Cody McKay has slammed the decision to reduce fuel standards, with the higher sulphur content commonly referred to as ‘dirty’ fuel.

He expressed frustration, saying, “We’re already dealing with high fuel prices, and now they’re introducing this subpar fuel with excessive sulphur that our cars don’t need.”

As a mechanic, he emphasized his concern for keeping vehicles in optimal condition for Australian families, describing the situation as “upsetting.”

He advised motorists to take simple steps to safeguard their cars, such as inflating tires to 36–40 PSI, ensuring regular maintenance, and considering the use of fuel cleaners to maintain clear injectors and pumps.

‘I’d really like you guys to stay on the road,’ he said. 

NSW mechanic and racer Cody McKay has slammed the decision to reduce fuel standards 

The Albanese Government revealed it was relaxing fuel quality standards, allowing petrol with higher sulphur content to flow into the domestic market for the next 60 days, to alleviate petrol supply issues stemming from the Middle East conflict

The move comes as the Middle East conflict disrupts global oil flows, particularly after Iran’s closure of the Strait of Hormuz, which normally carries about one‑fifth of the world’s oil supply.

Fuel companies will also be allowed to hold less fuel in reserve, part of a broader plan to push more stock toward regional Australia, where panic buying has doubled fuel demand and left some communities facing empty bowsers.

However, motoring experts say the temporary drop in fuel quality will not harm most car engines.

The NRMA has urged motorists to stay calm, stressing that the fuel now being released is the same petrol Australians were using 12 months ago, before new sulphur limits came into effect in late 2025.

‘It’s not really dirty fuel in the sense that it’s going to hurt your engine,’ NRMA spokesman Peter Khoury said. 

‘It’s a temporary measure. It only affects petrol, it doesn’t affect diesel.’

Mr Khoury said the main issue is environmental, not mechanical. 

‘There’s no need for people to be nervous or afraid,’ he said. 

Fuel companies will also be allowed to hold less fuel in reserve, part of a broader plan to push more stock toward regional Australia, where panic buying has doubled fuel demand and left some communities facing empty bowsers

The higher sulphur content may slightly reduce the efficiency of modern emissions systems, but the short‑term impact on engines is negligible.

Meanwhile, the government argues the decision is essential to prevent a deeper crisis. 

Bowen confirmed Australia continues to receive fuel shipments, but warned that future supply threats are ‘realistic’ if the Middle East conflict escalates.

The International Energy Agency has also triggered a coordinated response among member nations, including Australia, to stabilise global markets by releasing emergency reserves.

The NSW Government will convene a fuel security roundtable on Monday, bringing together industry leaders, government agencies and unions to coordinate the state’s response to the escalating fuel shortage.

Premier Chris Minns said the meeting is essential to keeping supplies stable and ensuring every part of the sector is aligned.

‘We’re bringing together industry, stakeholders and government agencies so everyone is sharing information and ready to respond,’ he said.